iShares Core S&P Small-Cap ETF (NYSEARCA:IJR) tracks a market-cap-weighted index of primarily small-cap U.S. stocks. The S&P Committee selects 600 stocks representing about 3% of the publicly available market.
The index measures the performance of the small-capitalization sector of the U.S. equity market, as determined by S&P Dow Jones Indices (SPDJI). The fund generally will invest at least 80% of its assets in the component securities of its index and in investments that have economic characteristics that are substantially identical to the component securities of its index and may invest up to 20% of its assets in certain futures, options and swap contracts, cash and cash equivalents.
IJR has $68 billion in assets under management and an average spread of 0.01%. It is currently trading around $101 a share, giving it a 1.70% dividend yield. Its expense ratio is 0.06%, meaning it is relatively inexpensive to hold in relation to other exchange-traded funds.
Why choose IJR? Exposure to U.S. small cap stocks is its primary benefit. The fund also has low cost attached to it and is tax efficient. It also makes for a good core of a portfolio to seek long-term growth.
However, as with any opportunity, potential investors should conduct their own due diligence in deciding whether or not this fund fits their own individual investing needs and portfolio goals.
As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.